But if you’re able to just stimulate your plasma donor with a vaccine against strep pneumonia, it’s a lot easier to control the raw material supply there. So we think that these hyperimmunes could have ASCENIV-like penetration. We think that these hyperimmunes could have utility even outside of the PI population. And with respect to your question about capacity, I mean, look, I love BIVIGAM. I love Nabi. I love ASCENIV. I love every product that generates revenue and has the gross margin that we’re seeing. I mean, we have the best gross margin profile of any plasma fractionator globally to the best of my knowledge. It can only improve, Gary, and I don’t want to say, I want to stop making BIVIGAM, but look, ADMA Biologics founding principles were to make the products that nobody else wants to make.
To make hyperimmunes targeted at specific infectious diseases. So you asked — I think you asked, what other pathogens? Well, what’s your favorite infectious disease of the day? If we can generate antibody through vaccination, if we can generate antibody through, we’re being able to detect that naturally occurring antibody using special testing methods, we can make anything. And then if you dig deeper into our IP, we also have IP around, but we can make hyperimmunes by making a, call it a BIVIGAM plasma pool, a normal IG and then spiking it with monoclonal antibodies. We’ve got IP around that as well. So I think the sky’s the limit for us. Our small plant here that can produce, call it, 2 million grams of IG annually. If it’s all hyperimmune globulin, I mean, the sky’s the limit.
To Kristen’s earlier question, how much revenue can you generate? I mean, in theory, it could be billions. Are we there yet? No. Are we ready and prepared to give guidance in that arena? No. But the reason why I think that this could be a $300-plus-million product is you just look at where ASCENIV is today. It’s easier for me to get the plasma and the market is a lot broader for a strep pneumonia type hyperimmune. I mean, there’s billions of dollars of vaccine being sold. If you just take that sub-segment of how much vaccine is being used for patients that are going for surgery or entering the hospital, and if you give a globulin on top of that, we’re picking up the crumbs and these are 60%, 70%, 80% gross margin products, maybe even more.
Gary Nachman: Okay. Great. That was very helpful. Thank you. And then just to follow up, I don’t think you mentioned this before, but could you give us a better sense of what is implied in the revenue guidance in terms of the mix between ASCENIV and BIVIGAM this year and next? And how aggressive can you be at paying down the debt? I’m curious how much that’s factored into the net income guidance for this year and next year.
Adam Grossman: These are all great questions. I mean, look, Gary, we reiterate that mix. I’m trying to stay away from where this is. We always said in the beginning 80-20 and then 70-30, and we do say that we’re going to get to this 50-50 split. The timing of which, it — we’re doing really well, Gary. What can I tell you? We’re doing very, very well. Because we are seeing — and it’s not just from ASCENIV. I mean, BIVIGAM is doing well also. The fact that plasma collections are up and the fact that plasma supply and the supply chain has opened up post-COVID, I mean, we’re just seeing lots of efficiencies and we’re realizing lots of efficiencies within our own operating organization here. So, BIVIGAM is contributing nicely as well.
We look at this as — the guidance that we’re giving this year, I think is pretty straightforward and clear. I think it’s what, it’s $330 million or more now and we’re saying $70 million or so in net income. I mean, that’s nice. My task is to beat it and my request of all my ADMA employees and team members here listening is we need to beat it. I mean, again, we’re hyper-focused on shareholder returns here. You saw us use cash on our balance sheet to pay down some of the debt and to reduce the interest expense and we were opportunistic. With respect to your question about, our guidance does not contemplate us paying down the debt. Certainly, if we hit the forecast that we are presenting today, or if we exceed it, I mean, look, we have the ability at least with the revolver portion of the loan where there’s only a 50% minimum draw there.
So, we have some optionality as cash builds on the balance sheet that we can pay this down without any prepayment penalties. Obviously, reducing the interest expense and improving that income. So, I’m not looking to onboard assets right now. We’re really confident in our ability to manage the R&D spend and we’re confident in our ability to effectively deliver on our internal R&D engine. But I can tell you that, we’re going to do the right things here. I’m a substantial stockholder. As you know, my family’s substantial stockholders. We want to see this stock really achieve the value that we believe. Again, I think I said it earlier, I think the stock is truly undervalued. Based on what I’ve seen in the back half of 2023 and what I see in the beginning part of 2024 here, we’re on the right path and we’re going to continue to generate cash and we’re going to be as opportunistic as possible to maximize shareholder value.
Gary Nachman: Great. Thanks so much.
Operator: Thank you.
Adam Grossman: Thank you, Gary.
Operator: And ladies and gentlemen, this will conclude our question-and-answer portion of the call. I’d like to turn it back to Adam for additional closing remarks.
Adam Grossman: Thank you, everybody. Thank you to the analysts for the good questions. Donate plasma, help save lives again and stay safe. And thank you for your interest in ADMA Biologics and the products that we make to help save lives.
Operator: Ladies and gentlemen, this concludes the conference. You may now disconnect.
